Erratum for the Spry Roughley October Report

On reading my introductory comments to The Report newsletter I sent you yesterday I realised that a line of text had been deleted through a typographical error and that changed the meaning of my comments concerning pension balances.

My comment inferred that a members pension balance in their superannuation fund would retain its tax free status for the income and any realised capital gains until after the members benefits are paid out of the fund.

That should have read that a members pension balance in their superannuation fund would retain its tax free status for the income and any realised capital gains after the member has died, up until the time the deceased members benefits are paid out of the fund.

This is still good news as it means no tax is payable within the fund on realising the pension fund investments in order to pay out the death benefit.

The difference is that I wanted to be clear that no change had occurred on the tax treatment of benefits actually paid out of the fund to the beneficiaries. The tax at that stage levied on the beneficiaries is determined by the "taxed" and "tax free" components of the balance actually paid out and the status of the beneficiary.

I apologise if this caused you any confusion, and if you have any questions on this, or other matters, please feel free to call me.

Warm regards,

Martin

Martin Roughley, Director
Spry Roughley Services Pty Limited

 

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